GSIS net income rises 20 folds to P61B in H1, fund life until 2058

State workers’ pension fund Government Service Insurance System (GSIS) on Friday said its bottom line grew 20 folds in the first six months of 2023 while its actuarial life was seen to last for the next 35 years.

In a statement, GSIS said its net income during the January to June period stood at P61 billion, 20 times higher than the P3 billion earnings seen in the same period last year.

The state insurer said the growth in profitability seen during the first half was on the back of strong revenues and an improvement in the revenue-to operating expense ratio at 2% from the 5% ratio last year.

GSIS said administrative and operational expenses grew by 10%, “largely due to the increase in claims and benefits.”

"Although these expenses have grown, the rate of increase was slower," said GSIS president and general manager Wick Veloso.

"A key factor in keeping expenses under control has been the careful management of operational costs," he added.

The GSIS chief also emphasized that the pension fund's life "was now at 2058 or 35 years, which was achieved through enhanced data analytics and sustained investment returns."

"A lengthier actuarial life allows us to meet our obligation of providing timely benefits to our members and pensioners. As a financial institution, we focus on growing our members' contributions through strategic investment opportunities," said Veloso.

Meanwhile, GSIS' investments in vital sectors such as real estate, infrastructure, food, energy and mining also increased during the period.

Total investment in the domestic sectors has reached P1.2 trillion for the first half of the year, while global investments also rose by 8% to P204 billion.

As of end-June 2023, the pension fund's total assets totaled P1.6 trillion, up 8% year-on-year.

Veloso said the fund's future strategies include an investment approach focused on the “4Ps,” namely pabahay (housing), power (energy),  pagkain (food), and pagamot (healthcare).

"These sectors are at the heart of the government’s socio-economic agenda, and investing in them is an investment in the Filipino people," said Veloso. —Ted Cordero/KBK, GMA Integrated News